News

With just days to go and negotiations on some aspects of the budget down to the wire here is everything we know so far about what to expect when Paschal Donohoe presents Budget 2018 on Tuesday.

Tax cuts

A cut to the much-hated USC and a tweaking of income tax bands will be included in next week’s Budget following a compromise between Fine Gael and Fianna Fáil in an effort to ensure that the budget will pass.

As part of a compromise deal being hammered out between Finance Minister Paschal Donohoe and Fianna Fáil, it has been agreed that a double-edge approach to personal taxation will be taken.

The USC cut will help the ‘squeezed middle’ earning up to €70,000 a year, while the tax band changes will benefit people on salaries over €33,800.
However, the net increase in workers’ pay packets is likely to be less than €20 a month.

Pension and social welfare payments

The Government looks set to make good on their commitment to introduce another €5 increase in the old age state pension. However, it is understood Finance Minister Paschal Donohoe is considering delaying the increase for a number of months due to concern over the €150m cost of the move. The reintroduction of a telephone allowance for elderly people is also expected.